On March 3, 2025, B. Riley Financial, Inc. (NASDAQ: RILY), a leading diversified financial services company, announced its preliminary estimates for the financial results of the fourth quarter of 2024. This announcement comes as the company undergoes an ongoing audit of its annual financial statements, with results still subject to completion.

1. Key Financial Highlights

B. Riley's preliminary financial estimates reveal a mixed bag of results for the quarter ending December 31, 2024, reflecting both challenges and progress as the company positions itself for future growth.

Net Income: The net income available to common shareholders is expected to fall between $48 million to $68 million, translating to $1.57 to $2.22 per diluted net income per common share. This figure includes significant income from discontinued operations, primarily stemming from the divestiture of a majority interest in the Great American businesses, estimated at $236 million to $247 million.

Continued Operations: On the other hand, the net loss from continuing operations is projected to be in the range of ($178 million) to ($187 million). Despite this loss, the operating adjusted EBITDA from continuing operations is estimated at $12 million to $14 million, showing some operational resilience.

Cash Position: As of December 31, 2024, the company reported a cash position of approximately $257 million, which includes about $156 million in cash and cash equivalents and $101 million in restricted cash. This restricted cash is primarily reserved for the company’s senior notes, which were redeemed on February 28, 2025.

Debt Levels: B. Riley's total debt stood at $1.78 billion at year-end, with total debt net of cash and investments amounting to $991 million, representing a notable decline of $221 million from the previous quarter.

2. Leadership Insights

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, expressed optimism regarding the company's trajectory. He noted that the current quarter marks a pivotal transition, moving from managing losses in principal investments to focusing on core business operations.

Riley highlighted significant strides made in monetizing non-core assets and addressing near-term liabilities, although he acknowledged that unusual expenses related to legal, transaction, and restructuring fees had negatively impacted results. He expressed confidence that these expenses would decrease as the company moves through 2025.

"While we recognize we have work to do, we do believe the worst is behind us and remain confident in the future based on the underlying strength of our core businesses, including B. Riley Securities," Riley stated.

3. Investor Conference Call

B. Riley Financial will host an investor conference call on the same day as the press release, March 3, at 4:30 PM ET (1:30 PM PT). The call will provide further insights into the company’s business operations and detailed discussions of the preliminary financial results. Interested investors can access the live audio webcast and an archived recording through the company's investor relations portal.

4. Conclusion

B. Riley Financial's preliminary estimates signal a complex financial picture for the fourth quarter of 2024, characterized by strong performance in certain areas, especially regarding discontinued operations, while also facing challenges from continuing operations. As the company moves forward, it aims to leverage its core strengths, manage its debt effectively, and position itself for growth in the upcoming quarters. The forthcoming investor call will likely shed more light on the company’s strategic direction and operational plans for 2025 and beyond.

Original press release